Mark Zuckerberg Threw $77 Billion 'Into The Toilet' On Metaverse, Says Economist Dean Baker: Asks If He Is Set To Waste Billions More On AI

Economist Dean Baker criticized Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg's monolithic stake connected the Metaverse, arguing the astir $77 cardinal spent connected the task represents not conscionable a firm loss, but a broader economical nonaccomplishment that carries existent societal costs.

In his newsletter connected Monday titled “Did Mark Zuckerberg Throw $77 Billion of Our Money into the Toilet?” Baker said that portion Meta's Metaverse ambitions could beryllium viewed arsenic “just a mistaken concern decision, of the benignant companies marque each the time,” the standard of the spending made it acold much consequential.

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He said that erstwhile Zuckerberg invested $77 cardinal into Meta's virtual world push, helium efficaciously diverted scarce endowment and carnal resources distant from much productive uses.

“The flip broadside to this communicative is that erstwhile companies marque anserine concern decisions, arsenic it seems Zuckerberg did with the $77 cardinal helium threw into Meta, it is not conscionable a nonaccomplishment connected their books, but besides a outgo to society,” helium said.

He noted that bundle engineers, planners and enactment unit were tied up successful the task for years, alongside carnal inputs specified arsenic bureau space, computing instrumentality and ample amounts of electricity.

Baker, who co-founded the Center for Economic and Policy Research, added that these aforesaid resources “could person different been productively employed,” suggesting adjacent the operation materials utilized for Meta's enlargement could person alternatively supported “affordable lodging successful the costly Bay Area.”

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Baker said the failed Metaverse stake becomes particularly applicable arsenic large exertion firms present determination hundreds of billions of dollars into artificial intelligence.

He warned that the AI concern roar is already reshaping the economy, fueling maturation by absorbing apical engineering endowment portion simultaneously placing dense strain connected powerfulness grids and complicating clime goals.

The cardinal question, Baker concluded, is whether Zuckerberg has go a much disciplined steward of superior since the Metaverse era. “We are apt to larn the reply successful 2026.”

Meta did not instantly respond to Benzinga’s petition for a remark connected this. The communicative volition beryllium updated arsenic soon arsenic we person a response.